TransAlta Renewables Inc.

TSX : RNW


TransAlta Renewables Inc.

May 02, 2014 08:45 ET

TransAlta Renewables Reports First Quarter Results for 2014

CALGARY, ALBERTA--(Marketwired - May 2, 2014) - TransAlta Renewables Inc. (the "Company") (TSX:RNW) today reported first quarter Comparable EBITDA(1) of $55.7 million. Net Earnings for the first quarter were $21.1 million, or $0.18 per share.

"TransAlta Renewables is off to an excellent start since our IPO," said Brett Gellner, President. "We have strong momentum and continue to benefit from our diversified portfolio of high quality, long-term contracted assets. We are pleased with the recent addition of Wyoming Wind and continue to explore other exciting growth opportunities that will create value for our investors."

In April, the Company, together with TransAlta Corporation, completed a secondary offering of 11,950,000 of its common shares to the public at a price of $11.40 per common share. The Company will not receive any of the proceeds from the sale of Common Shares held by TransAlta. The offering closed on April 29, 2014. After giving effect to the offering, TransAlta Corporation holds a 70.3% ownership in the company.

Historically, financial statements have not been prepared by TransAlta for the assets of the Company, as they had not been operated as a separate business by TransAlta. Accordingly, the financial statements for periods prior to the initial public offering ("IPO") on August 9, 2013, reflect the financial statements for the assets in a manner consistent with how TransAlta managed the assets and as though the assets had been a separate Corporation. Therefore, historical financial information is not directly comparable to current results due to the implementation of certain commercial arrangements between the Company and TransAlta Corporation that took effect upon closing of the Company's IPO, including the entering into of firm priced power purchase agreements for generating facilities whose power was previously sold on a merchant basis. Prior to the IPO, these commercial arrangements did not exist and the Company's assets were held directly or indirectly by TransAlta. More details in regards to the basis of preparation can be found in Note 1 of our 2013 audited consolidated financial statements.

Summary Results

Q1 2014 compared to Q1 2013

  • Comparable EBITDA of $55.7 million up from $46.4 million for the same period last year
  • Funds from operations of $46.4 million up from $39.2 million for the same period last year
  • Production of 818 GWh, up from 768 GWh for the same period last year

The following table depicts key financial results and statistical operating data:

First Quarter 2014 Highlights

In $CAD thousands, unless otherwise stated 3 months ended
March 31, 2014
3 months ended
March 31, 2013
Production (GWh)(1) 818 768
Revenue 67,965 60,917
Net earnings attributable to common shareholders 21,134 14,004
Comparable EBITDA(2) 55,662 46,384
Funds from operations(2) 46,354 39,191
Cash flow from operating activities 45,210 53,228
Cash available for distribution(2) 16,835 36,902
Net earnings per share attributable to common shareholders, basic and diluted 0.18 0.12
Comparable earnings per share(2) 0.18 0.12
Funds from operations per share(2) 0.40 0.34
Cash available for distribution per share(2) 0.15 0.32
Dividends paid per common share 0.19 -
  1. Excludes production from Wyoming Wind
  2. Comparable EBITDA refers to Earnings before interest, taxes, depreciation and amortization including dividends on the Wyoming Wind preferred shares and adjusted for certain other items. Cash available for distribution represents the amount the cash generated from operations by our business, before changes in working capital and after sustaining and productivity capital, distributions to non-controlling interest and principal repayments of debt. Comparable EBITDA, funds from operations, cash available for distribution, comparable net earnings, comparable net earnings per share, funds from operations per share and cash available for distribution per share are not defined under IFRS. Presenting these measures from period to period provides supplemental information to help management and shareholders evaluate earnings' and cash flow trends in comparison with prior periods' results. Refer to the Non-IFRS Measures section of the Management's Discussion and Analysis ("MD&A") for further discussion of these items.

A complete copy of TransAlta Renewables' first quarter report including MD&A and unaudited financial statements is available in the Investors Centre section of our website: www.transaltarenewables.com.

About TransAlta Renewables Inc.

TransAlta Renewables owns 29 wind and hydroelectric power generation facilities, including our economic interest in Wyoming Wind, having an aggregate installed generating capacity of 1,376 MW, in which it holds a net ownership interest of approximately 1,255 MW. TransAlta Renewables' power generating capacity is among the largest of any publicly-traded renewable independent power producer ("IPP") in Canada, with more wind power generating capacity than any other Canadian publicly-traded IPP. TransAlta Renewables' strategy is focused on the efficient operation of its portfolio of renewable power generation assets and expanding its asset base through the acquisition of additional renewable power generation facilities in operation or under construction. TransAlta Renewables objectives are to (i) create stable, consistent returns for investors through the ownership of contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties, including TransAlta; (ii) pursue and capitalize on strategic growth opportunities in the renewable power generation sector; and (iii) pay out a portion of cash available for distribution to the shareholders of TransAlta Renewables on a monthly basis.

Cautionary Statement Regarding Forward Looking Information

This news release may contain forward looking statements, including statements regarding the business and anticipated financial performance of the Company. These forward-looking statements are not historical facts but reflect the Company's current expectations concerning future plans, actions and results. These statements are subject to a number of risks and uncertainties that could cause actual plans, actions and results to differ materially from current expectations including, but not limited to, the ability to successfully obtain regulatory approvals; changes in tax, environmental, and other laws and regulations; competitive factors in the renewable power industry; operational breakdowns, failures, or other disruptions; changes in economic and market conditions; and other risks and uncertainties discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time and as also set forth in the Company's MD&A and 2014 Annual Information Form. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this news release. The Company disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Note: All financial figures are in Canadian dollars unless noted otherwise.

Contact Information

  • Investor inquiries:
    Brent Ward
    Director, Corporate Finance and Investor Relations
    1-800-387-3598 in Canada and U.S.
    investor_relations@transalta.com

    Media inquiries:
    Stacey Hatcher
    Manager, External Communications
    Cell: 587-216-2242
    Toll-free media number: 1-855-255-9184
    Alternate local number: 403-267-2540